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Restructuring, Acquisition and Related Costs
12 Months Ended
Dec. 31, 2024
Restructuring and Related Activities [Abstract]  
Restructuring, Acquisition and Related Costs

16. Restructuring, Acquisition and Related Costs

The following table summarizes restructuring, acquisition and related costs recorded in the accompanying consolidated statements of operations for the periods indicated (in thousands):

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

2024 restructuring

$

10,486

 

 

$

 

 

$

 

2022 restructuring

 

 

 

 

8,961

 

 

 

1,414

 

2020 restructuring

 

 

 

 

2,853

 

 

 

2,994

 

Total restructuring related charges

$

10,486

 

 

$

11,814

 

 

$

4,408

 

Acquisition and related charges

$

3,223

 

 

$

1,000

 

 

$

(24

)

Total restructuring, acquisition and related costs

$

13,709

 

 

$

12,814

 

 

$

4,384

 

2024 Restructuring

As a result of the Company’s acquisitions and ongoing integration activities, the Company initiated the 2024 restructuring program in the first quarter of 2024 in order to reduce operating complexity. During the year ended December 31, 2024, the Company recorded $10.5 million in severance, facility related and other charges in connection with the 2024 restructuring program. As of December 31, 2024, the Company had incurred cumulative costs of $10.5 million related to this restructuring program. The Company anticipates substantially completing the 2024 restructuring program in the first half of 2025 and expects to incur additional restructuring charges of $4.0 million to $5.0 million related to the 2024 restructuring program.

The following table summarizes restructuring costs associated with the 2024 restructuring program by reportable segment (in thousands):

 

Year Ended December 31,

 

 

Cumulative Costs as of

 

 

2024

 

 

December 31, 2024

 

Automation Enabling Technologies

$

3,198

 

 

$

3,198

 

Medical Solutions

 

6,769

 

 

 

6,769

 

Unallocated costs

 

519

 

 

 

519

 

Total

$

10,486

 

 

$

10,486

 

2022 Restructuring

As a result of the Company’s ongoing evaluations and efforts to reduce its operating costs, while improving efficiency and effectiveness, the Company initiated the 2022 restructuring program in the third quarter of 2022. This program was focused on reducing operating complexity in the Company, including reducing infrastructure costs and streamlining the Company’s operating model to better serve its customers. In addition, the program was focused on cost reduction actions to improve gross margins for the overall company. As of December 31, 2024, the Company had incurred cumulative costs of $10.4 million related to the 2022 restructuring program. The 2022 restructuring program was completed in the fourth quarter of 2023.

The following table summarizes restructuring costs associated with the 2022 restructuring program by reportable segment (in thousands):

 

Year Ended December 31,

 

 

Cumulative Costs as of

 

 

2023

 

2022

 

 

December 31, 2024

 

Automation Enabling Technologies

$

6,771

 

$

1,358

 

 

$

8,129

 

Medical Solutions

 

1,359

 

 

56

 

 

 

1,415

 

Unallocated costs

 

831

 

 

 

 

 

831

 

Total

$

8,961

 

$

1,414

 

 

$

10,375

 

 

2020 Restructuring

As a result of the Company’s ongoing evaluations and efforts to reduce its operating costs, while improving efficiency and effectiveness, the Company initiated the 2020 restructuring program in the third quarter of 2020. This program was focused on reducing operating complexity in the Company, including reducing infrastructure costs and streamlining the Company’s operating model to better serve its customers. In addition, the program was focused on cost reduction actions to improve gross margins for the overall company. As of December 31, 2024, the Company had incurred cumulative costs of $16.7 million related to the 2020 restructuring program. The 2020 restructuring program was completed in the fourth quarter of 2023. In January 2025, the Company sold an owned facility with a $3.6 million gain.

The following table summarizes restructuring costs associated with the 2020 restructuring program by reportable segment (in thousands):

 

Year Ended December 31,

 

 

Cumulative Costs as of

 

 

2023

 

2022

 

 

December 31, 2024

 

Automation Enabling Technologies

$

2,853

 

$

2,775

 

 

$

13,827

 

Medical Solutions

 

 

 

217

 

 

 

2,716

 

Unallocated costs

 

 

 

2

 

 

 

173

 

Total

$

2,853

 

$

2,994

 

 

$

16,716

 

Roll-forward of Accrued Expenses Related to Restructuring Programs

The following table summarizes the accrual activities, by component, related to the Company’s restructuring programs recorded in the accompanying consolidated balance sheets (in thousands):

 

Total

 

 

Employee Related

 

 

Facility Related

 

 

Other

 

Balance at December 31, 2022

$

2,410

 

 

$

1,902

 

 

$

452

 

 

$

56

 

Restructuring charges

 

11,814

 

 

 

5,832

 

 

 

4,452

 

 

 

1,530

 

Cash payments

 

(8,867

)

 

 

(6,675

)

 

 

(1,379

)

 

 

(813

)

Non-cash write-offs and other adjustments (1)

 

(2,507

)

 

 

(21

)

 

 

(1,845

)

 

 

(641

)

Balance at December 31, 2023

 

2,850

 

 

 

1,038

 

 

 

1,680

 

 

 

132

 

Restructuring charges

 

10,486

 

 

 

8,165

 

 

 

2,034

 

 

 

287

 

Cash payments

 

(5,898

)

 

 

(3,469

)

 

 

(2,007

)

 

 

(422

)

Non-cash write-offs and other adjustments

 

(687

)

 

 

(44

)

 

 

(646

)

 

 

3

 

Balance at December 31, 2024

$

6,751

 

 

$

5,690

 

 

$

1,061

 

 

$

 

(1) Non-cash write-offs and other adjustments included impairment of assets amounting to $2.5 million.

Acquisition and Related Charges

Acquisition costs incurred in connection with business combinations, primarily including finders’ fees, legal, valuation and other professional or consulting fees, totaled $3.5 million, $1.0 million, and $1.4 million during 2024, 2023, and 2022, respectively. Acquisition related costs/(income) recognized under earn-out agreements in connection with acquisitions totaled $(0.3) million, zero, and $(1.4) million during 2024, 2023, and 2022, respectively. A majority of the acquisition and related costs of $3.2 million for 2024 were not allocated to any of the reportable segments.